KARA HILDRETH DERRICK WILLIAMS JESSICA HARPER
Bud & Bytes floral, computer shop expands 2A ‘Urban style’ dining poised to open in Lakeville 8A Wings Financial merges with City-County 10A
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DATE 29, ##, 2010 2009 JULY
VOLUME 30, NUMBER # VOLUME 31, NUMBER 22
Dakota County Tribune Since 1884
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Local restauranteurs favor pay freeze for servers Tipped employees divided on minimum wage issue
He said he has also had to cut his staff size to pay the minimum wage increases for tipped workers. by Jessica Harper “My labor pool is down about 15 perDAKOTA COUNTY TRIBUNE cent while my sales have been constant Many voters and labor groups have exover the past year,” Rebers said. pressed outrage over GOP gubernatorial canBy freezing the minimum wage for tipped didate Tom Emmer’s recent comments about employees, Rebers said he would have the possibly creating a tip credit in Minnesota, but money to give non-tipped employees pay raises local restaurateurs welcome the idea. and hire more employees. A tip credit would allow restaurants to pay Doron Jensen, owner of Jensen’s Supper tipped wait staff less than the minimum wage Club and Jensen’s Cafe, said he faces the to as low as $2.13 an hour (the federal minisame challenges and favors a tip credit that mum). The federal government defines a tipped would freeze the minimum wage for tipped employee as a worker who earns more than employees. $30 a month in tips. Jensen said he too has been unable to Currently all employers in Minnegive pay raises to non-tipped employsota must pay $7.25 an hour (the fedees due to minimum wage increases for eral minimum wage) despite the fact servers. that the state minimum wage is $6.15 an “We are trying to bring up the bothour. This is because the federal minimum tom,” he said. wage is the higher of the two. Jensen claims his servers earn about $25 to However, business that generates less than $30 an hour at Jensen’s Supper Club and $15 $625,000 in annual revenue and do not particito $20 per hour at Jensen’s Cafe when includpate in interstate commerce are exempt. ing tips. Several restaurateurs said they don’t favor reBy comparison, his cooks and managers earn ducing the minimum wage. Rather, they would between $9 and $10 an hour. like it to be frozen at $7.25 an hour for tipped “I spend $500 more per week to pay (servworkers. ers),” Jensen said. “If I want to raise others’ pay “There’s a big misconception – I’m all for a or offer benefits, it’s harder.” minimum wage increase, but for the restaurant Jensen said he previously offered benbusiness, who it helps the most are the efits to employees who worked at least 25 highest paid employees,” said Craig Rehours a week but had to discontinue it bers, owner of Roasted Pear in Burnsville. recently due to the economy. Rebers said his tipped employees earn Freezing the minimum wage for between $18 to $20 per hour after tips. tipped employees might make it easier to Rebers pointed out that tips are offer benefits such has health insurance counted as income for tax purposes, social in the future, he said. security payments and unemployment In addition to providing relief to small insurance. Therefore, he argues, legislabusinesses, a tip credit would help Mintors should not view tipped workers as nesota compete with other states, such as minimum wage earners but instead conWisconsin and Iowa, which set the minisider their entire income. mum wage at $2.33 and $4.35, respectively, for tipped workers. Hardships in hard times Minnesota is currently the only state Several restaurant owners said recent in the Midwest that does not have a tip Photo by Jessica Harper increases in the minimum wage has crecredit. Jill Geundlach, 38, has been a bartender for four and a half ated a hardship for their businesses. “It’s created an anti-business climate,” Rebers said it has made it impossible years at Jensen’s Supper Club and said she opposes creating Rebers said. “I think more restaurants for him to give pay raises to non-tipped a tip credit that would freeze the minimum wage for tipped would open if Minnesota changed.” employees such as dishwashers who earn workers. Geundlach said she worries it would create a hardBoth Jensen and Rebers said they are ship for workers during a poor economy. about $8.15 an hour. See Wages, Page 44A
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